Final answer:
In manufacturing, goods ready for sale are called finished goods, while in merchandising, they are known as merchandise or inventory. Inventory management is vital for cost control and meeting demand.
Step-by-step explanation:
In a manufacturing company, goods that are ready to be sold to customers are referred to as finished goods, whereas in a merchandising company they are generally referred to as merchandise or inventory. The term inventory can also refer to the broader category of goods that a business holds, which includes raw materials, work-in-progress, and finished goods. The level of inventory a company holds often fluctuates based on sales expectations and actual consumer demand. Efficient management of inventory is crucial to reduce costs and ensure the timely delivery of products to customers.
In a manufacturing company, goods that are ready to be sold to customers are referred to as finished goods whereas in a merchandising company they are generally referred to as inventory.